Friday, April 13, 2012

(Reuters) - An Obama administration task force established
to investigate misconduct that fueled the financial crisis is turning to a
little-used statute that may make such cases easier to bring, according to
people familiar with the matter.

The federal statute, FIRREA, was passed in the wake of the
savings-and-loan scandals in the 1980s. It requires a lower burden of proof
than criminal charges, has a longer statute of limitations than other financial
laws and potentially could bring big fines.

But it has appeared in only a few dozen cases since it was
enacted in 1989.

The task force, which is in the Justice Department, used
FIRREA earlier this year when it issued more than a dozen civil subpoenas to
top financial institutions, including Citigroup, the people familiar with the
matter said.